Celsius’ Ether Staking Shake-Up Stretches
Celsius Network, the embattled cryptocurrency lender, is shaking up its ether (ETH) staking strategy, adding to the already month-long queue to activate new validators on the Ethereum network.
After redeeming $813 million of staked ETH from liquid staking leader Lido Finance, the firm has been diligently moving ETH into staking contracts over the course of two days. According to Arkham Intelligence data, Celsius has deposited approximately $745 million in ETH since June 1.
The transfers have added 44 days to the already lengthy queue for establishing new validators on the Ethereum network, with Celsius potentially responsible for nearly a week of extra time, according to Tom Wan, analyst at crypto investment product manager 21Shares.
Celsius has reshuffled its staked ETH stash since April, when Ethereum’s Shanghai upgrade enabled withdrawals from staking contracts. The transfers have occurred as the firm restructures after filing for bankruptcy protection in July. Last week, the U.S. bankruptcy court auctioned the lender to Fahrenheit, an investment group backed by Arrington Capital, who will assume the firm’s assets, including its institutional loan portfolio, staked cryptocurrencies and crypto mining units.
(With inputs from Shikha Singh)
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